BTCUSD Analysis: Trump Walked Back Massive Tariffs on China

On Monday, Bitcoin stabilized at $115,000 after last week's sharp selloff, as Trump backed down on his threat to impose massive tariffs on China. In a post on Truth Social, Trump stated that trade relations with Beijing "will be fine."

This came after Bitcoin fell more than 10% to below $110,000 on Friday, when Trump announced an additional 100% tariff on Chinese goods starting November 1.

Note:This threat, in response to Beijing's new measures to control rare earth metal exports, triggered a massive selloff in financial markets.

China promised retaliatory measures, but over the weekend, both sides expressed a willingness to resume talks ahead of a possible meeting between Trump and Xi Jinping later this month.

Massive Leveraged Liquidations

The sharp drop late last week was caused by Trump’s tariff threat and a massive wave of leveraged positions being closed across the crypto market.

About $19–20 billion in crypto trades were liquidated within 24 hours, with Bitcoin hit the hardest. Around $65 billion worth of open contracts were wiped out, bringing market positioning back to where it was in July. These liquidations cleared out traders who had borrowed too much, easing short-term pressure on the market.

ETF Inflows Continue Despite Market Stress

Even with last week’s volatility, U.S. spot Bitcoin ETFs stayed strong. They recorded nine straight days of inflows, adding about $2.71 billion this week. BlackRock’s IBIT hasn’t seen a single outflow in October, continuing to buy during the selloff.

This steady demand from ETFs has helped support Bitcoin’s price, absorbing some of the selling pressure. While short-term traders were forced out, long-term investors kept buying, which limited the decline.

Bitcoin Short Term Outlook

With most speculative excess now flushed out, Bitcoin’s short-term setup favors a technical rebound driven by short covering and continued ETF inflows. Price is currently consolidating between $114,000 and $115,000, and may extend toward $120,000 or higher before encountering resistance. A subsequent pullback to $111,000–$112,000 remains likely as traders take profit and the market seeks a new equilibrium.